Prepare Adjusting Journal Entries,as Needed,for the Following Items

question 147

Essay

Prepare adjusting journal entries,as needed,for the following items.
(a)The Supplies account shows a balance of $500,but a count of supplies reveals only $200 on hand at year-end.
(b)The company initially records the payments of all insurance premiums as prepaid insurance.The unadjusted trial balance at year-end shows a balance of $500 in Prepaid Insurance.A review of insurance policies reveals that $100 of insurance is unexpired.
(c)Employees work Monday through Friday,and salaries of $2,500 per week are paid each Friday.The company's year-end falls on Tuesday.
(d)At year-end,the company received a utility bill for December's electricity usage of $200 that will be paid in early January.

Distinguishing between different decision-making contexts and selecting appropriate strategies.

Understand the principles of probability theory in decision-making.

Recognize and mitigate the symptoms and effects of groupthink in decision-making processes.

Understand the role and methods of brainstorming in idea generation within groups.

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Definitions:

Company Liquidates

The process in which a company ceases operations and sells off its assets to pay creditors.

Professional Corporation

A professional corporation is a type of business entity that is organized to provide professional services, such as legal or medical services, and offers its members liability protection.

Lawyer

A professional who is qualified to offer advice about the law or represent someone in legal matters.

Accountant

A professional who manages, audits, and prepares financial records and ensures compliance with legal and regulatory requirements.